SKC to Raise 1.1671 Trillion Won Through Paid-In Capital Increase... Expanding Investment in Glass Substrates

Expansion of Investment in Glass Substrate Business
Debt Ratio to Be Improved to 129%

SKC is accelerating investments in its glass substrate business and improving its financial structure through a rights offering worth KRW 1.1671 trillion.

SKC announced on May 12 that the final issue price for the rights offering has been set at KRW 99,500 per share. As a result, the company plans to issue a total of 11.73 million new shares to raise KRW 1.1671 trillion.

The funds raised will be used for investments in future growth businesses and to strengthen financial soundness. SKC had initially planned to allocate KRW 589.6 billion to the glass substrate business and KRW 410 billion to repay borrowings. However, due to the recent rise in the stock price, the total amount of capital raised has increased, providing greater capacity to repay borrowings.

SKC will maintain its planned investment in the glass substrate business, and the additional funds raised will be used to further repay borrowings. As a result, the amount allocated for repayment of borrowings will be increased from the previously planned KRW 410 billion to approximately KRW 577.5 billion.

The company also expects to see improvements in its financial indicators. With the expanded repayment of borrowings, SKC forecasts that its debt ratio, which was about 230% at the end of last year, will decrease to approximately 129%.

The company explained that recent improvements in performance and proactive communication with investors contributed to the increased scale of the fundraising. In its first quarter results announcement this year, SKC reported a positive EBITDA (earnings before interest, taxes, depreciation, and amortization) for the first time in 10 quarters.

Corporate presentations (IR) for global institutional investors held recently in four cities, including New York, also helped improve investment sentiment. Key executives, including President Kim Jongwoo, explained on-site the company’s profitability recovery, the restructuring of its business around semiconductors, and its strategy for the glass substrate business.

Progress in the commercialization of the glass substrate subsidiary Absolics has also raised market expectations. Recently, Absolics supplied 'non-embedding' glass substrate prototypes for next-generation network semiconductors to a U.S. telecommunications semiconductor company and has launched a new project.

The company stated that this product is performing well in reliability evaluations by the customer, and if it passes the evaluation, preparations for mass production could begin within the year.

An SKC representative said, “Despite difficult market conditions, investors continued to resonate with the future value of the glass substrate business and the potential for the company to regain competitiveness,” adding, “We will accelerate commercialization of glass substrates and improvement of our financial structure based on the funds secured.”

Subscription rights for existing shareholders will be available from May 14 to 15, and the new shares are scheduled to be listed on June 8.